Spend More Paul Krugman

Paul Krugman the Nobel-prize winning economist and writer for the NY times thinks we need another Stimulus. Further more he believes the money should be spent on infrastructure. I am not a noble prize economist nor a writer for the NY times but if the first stimulus just put our grand children in debt what makes anyone think another stimulus will solve our economic problems. It would seem to a layman trend follower this could make matters even worse.

According to Krugman, the bond market, which has soared to record heights, is in effect saying there’s no need to worry about deficits. Personally I hate deficits and owing anyone money. This trend in the bond market has been profitable for trend followers but leaves many to think there is a bond bubble brewing. What happens if our lenders decided they are growing weary of lending to a risky client ( the US Fed). Scary thought…the outcome could be massive inflation…high interest rates…etc..

These outcomes would hurt the average citizen…however this could be a major boon to the those who are trend followers. We are in such an unknown financial circle currently. However what is known and proven in times of crisis trend following and managed futures stand the potential to shine. The key is potential, there are no sure things and past performance is not indicative of future performance but I remember the bond crisis in 1994…the gulf war…as well as the more recent 2008 stock market and trend following held up and protected capital while others were decimated.

I can not see spending our way out of crisis makes any cents…just more debt for our great great grandchildren.

Andrew Abraham
Andrabr9@gmail.com
www.myinvestorsplace.com
Futures trading involves risk. People can and do lose money

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